“No , controller’s advice isn’t logical way to estimate uncollectible accounts . Loss rate are supposed to be ”
“used to estimate what the allowance should be , isn’t other way around . The contreller has advised that ”
you work backwards from preffered number for allowance to forecast bad debt loss rates
most as if to legitimize his preferred allowance number

Net income in the 3 quarters is not smooth increase . It increased 11200 to 12030
and then decrease to 10095 .

Requirment 6

“Yes , of course , there is proof of unethical behavior, Contreller appeared to work ”
backwards to reach a preffered allowance for doubtful acccounts balance . That appears
to have been motivated by a desire to smooth income . The decline in the historical bad
debt rate seems incompatible with the contreller’s statement which customers are slower
in paying this quarter .